REPORT DIGEST WESTERN ILLINOIS UNIVERSITY COMPLIANCE EXAMINATION FOR THE YEAR ENDED JUNE 30, 2021 Release Date: June 22, 2022 FINDINGS THIS AUDIT: 9 CATEGORY: NEW -- REPEAT – TOTAL Category 1: 1 -- 1 -- 2 Category 2: 1 – 6 -- 7 Category 3: 0 -- 0 -- 0 TOTAL: 2 -- 7 -- 9 FINDINGS LAST AUDIT: 11 Category 1: Findings that are material weaknesses in internal control and/or a qualification on compliance with State laws and regulations (material noncompliance). Category 2: Findings that are significant deficiencies in internal control and noncompliance with State laws and regulations. Category 3: Findings that have no internal control issues but are in noncompliance with State laws and regulations. State of Illinois, Office of the Auditor General FRANK J. MAUTINO, AUDITOR GENERAL To obtain a copy of the Report contact: Office of the Auditor General, Iles Park Plaza, 740 E. Ash Street, Springfield, IL 62703 (217) 782-6046 or TTY (888) 261-2887 This Report Digest and Full Report are also available on the worldwide web at www.auditor.illinois.gov INTRODUCTION This digest covers Western Illinois University’s (University) State compliance examination for the year ended June 30, 2021. Separate digests covering the University’s Financial Audit and Single Audit were separately released. In total, this report contains 9 findings, 3 of which were reported in the Financial Audit and Single Audit. SYNOPSIS • (21-04) The University did not adequately comply with the University Guidelines on remittance of excess funds. • (21-07) The University had weaknesses in computer inventory controls. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS NONCOMPLIANCE WITH THE UNIVERSITY GUIDELINES ON EXCESS FUNDS Western Illinois University (University) did not adequately comply with the University Guidelines on remittance of excess funds. During our testing of the University’s compliance with the University Guidelines, we noted the University complied with the requirement to calculate excess funds on indirect cost, auxiliary enterprises and accounting entities but failed to remit amounts due to the Income Fund for the following funds: Indirect Cost: $2,327,784 Public Service: 1,376,775 Instructional Resources: 732,195 University Publication: 7,014 Sponsored Credit Programs: 21,584 Parking Operations: 659,796 Total: $5,125,148 (Finding 4, pages 21-22) This finding has been reported since 2016. We recommend the University continue to monitor the activities of each accounting entity and ensure compliance with all requirements of the University Guidelines. The University agreed with the finding and stated it will continue to monitor the activities of each accounting entity and make a decision on remitting excess funds based on the University’s current resources. WEAKNESSES IN COMPUTER INVENTORY CONTROLS The University had weaknesses in computer inventory controls. The University was unable to locate 18 computers and other related computer equipment during their annual inventory. The original cost of the missing items totaled $21,600. The computers did not have encryption installed and the University could not determine if they contained confidential information at the time they were reported missing. Although the University had installed encryption software on computers during fiscal year 2021, users were granted the ability to disable the encryption software. (Finding 7, pages 27-28) This finding has been reported since 2016. We recommend the University implement adequate controls to ensure confidential data is adequately protected with methods such as encryption. In addition, we recommended the University review their practices of allowing users the ability to disable the encryption software. The University agreed with this finding and stated it will continue to review control measures and practices as it relates to the protection of confidential data on University computers. OTHER FINDINGS The remaining findings pertain to census data, financial reporting, noncompliance with the University Guidelines on Subsidies, inadequate internal audit function, lack of adequate controls over the review of internal controls over service providers, and weakness in cybersecurity programs and practices. We will review the University’s progress towards the implementation of our recommendations in our next State compliance examination. AUDITOR’S OPINIONS The financial audit report was issued separately. The auditors stated the financial statements of the University as of and for the year ended June 30, 2021, are fairly stated in all material respects. The single audit report was issued separately. The auditors conducted a Single Audit of the University as required by the Uniform Guidance. The auditors stated the University complied, in all material respects, with the types of compliance requirements that could have a direct and material effect on the University’s major federal programs for the year ended June 30, 2021. ACCOUNTANT’S OPINION The accountants conducted a State compliance examination of the University for the year ended June 30, 2021, as required by the Illinois State Auditing Act. The accountants stated the University complied, in all material respects, with the requirements described in the report. This State compliance examination was conducted by Adelfia LLC. JANE CLARK Division Director This report is transmitted in accordance with Section 3-14 of the Illinois State Auditing Act. FRANK J. MAUTINO Auditor General FJM:sjs